Risky Tightrope - The Academies Show London

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Risky Tightrope - The Academies Show London
Effective Management of Risk and
Compliance in a Multi Academy Trust or
Academy School
Presented By
Tom Healy
Gerard Joyce
Why should an Academy Trust care about Risk
Management?
• Risk Management is about meeting/improving standards and delivering better
outcomes
• Effective risk management better enables an Academy Trust to achieve its
objectives whilst operating effectively, efficiently, ethically and legally
• Academy Trusts are held to account by the EFA to comply with the Academies
Financial Handbook, funding agreements, and company and charity law
Academies Financial Handbook
– Risk Management
• The Trust must have in place a process for checking its financial systems,
controls, transactions and risks
• The Academy Trust should make a considered choice about its desired
risk profile, taking account of its legal obligations, business objectives
and public expectations (Sec 2.3.7)
• The Trust must recognise and manage present and future risks to ensure
its effective and continued operation. The trust should maintain a risk
register (Sec 2.3.7)
• The Trust’s management of risks must include contingency and business
continuity planning (Sec 2.3.8)
Academies Accounts Direction
– Trustees’ Report
• Must include a description of the principal risks and uncertainties facing
Trust as identified by the trustees together with a summary of their
plans and strategies for managing those risks
• The Trust should include a description of the principal risks and
uncertainties it faces, focussing on those that could seriously affect
the performance, future prospects or reputation of the trust,
including its viability. This will link to the risk management process
that the Trust has in place
Academies Accounts Direction
– Governance Statement
Capacity to handle risk
• The trustees have considered and reviewed the risks to which the
academy trust is exposed and the financial and compliance
controls that have been implemented to mitigate those risks
• A statement confirming the extent to which it believes that there
is a ‘formal ongoing process for identifying, evaluating and
managing the academy trust’s significant risks’
Why should an Academy Trust care about Risk
Management?
• Academy Trusts have a duty to implement processes to review the risks they
face and ensure that they are reduced to acceptable levels
• This duty encompasses ensuring effective safeguarding arrangements for the
protection of pupils and the entire school community.
Key Benefits
• Confidence that all key risks are identified, analysed and properly evaluated
• Ensures compliance with statutory obligations and standards
• Ensures accountability for risk management across the Trust and schools
• Delivers improvement in strategic, operational and financial management
• Reduction in events which might result in financial loss, disruption, bad
publicity, threats to the safety or health of pupils and other stakeholders, or
claims for compensation
A Robust & Structured Risk Management Process
• Ensures risk management is an integral part of “Leadership and
Management”
• Embeds the management of risk into the culture and across the
organisation
• Makes consolidation of risk information meaningful
• Ensures consistency, which is fundamental to Quality
• Highlights the Key Risk Indicators
So What Does a Structured Process Look Like?
Source: ISO 31000
Poor Performance
Security Incident
Safeguarding Deficient
Responsible Person
Competition
Fraud
Poor Recruitment
Defined Scope
Procedures
Poor Reputation
Training
Failure
to
Failure
to have
Failure
to
effectively
an
effective
attract enough
manage
security
Internal
Control
pupils
at
the school
Framework
Poor Planning
Audit
Not meeting Obligations
Poor Governance
Whistleblowing
Financial Misconduct
Inefficiency
Procedures
Increased Costs
Brakes Allow a Car to go Fast
Responsibilities of Senior Leaders
•
•
•
•
•
•
Establish a Risk Management Policy
Define How Risk is to be Managed and Implement
Communicate Policy and Process to All
Identify, Analyse, Treat Risks
Monitor Performance / Compliance Position
Report to the Governing Body
Reporting – What Leaders Should Know
• What is the overall risk profile?
What are the Top 10 risks
• Are we compliant?
• Are existing controls working / effective?
What verification of controls has been carried out?
• Where are the gaps in controls?
What is being done to address the gaps?
• Have there been any near misses / incidents?
• Key Risk Indicators
What is CalQRisk?
• A browser based Governance, Risk Management and Compliance
software application specifically tailored to facilitate the
management of risk and ensure compliance at the Trust and Academy
School levels.
• Enables a structured and systematic approach to risk management
• Includes a rich repository of risks (and their associated controls) that
are relevant to an Academy Trust environment.
• Comes pre-populated with EFA, DfE and Ofsted stipulated
requirements and standards as well as best practices informed by
education professionals.
CalQRisk Key Benefits
•
•
•
•
•
Knowledgebase covers many specialized areas
Evidences compliance with statutory obligations
Helps strengthen financial controls / management
Delivers consistent meaningful reporting
Increases likelihood you will achieve your
objectives
Contact us for more information
• [email protected]
• 020 8944 9990
• www.calqriskedu.co.uk

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